Pakistan : Unchecked sugar prices
Sugar prices continue to rise despite official claims, with rates reaching Rs 210 per kg against the fixed price of Rs 173. Punjab has pushed most mills to start crushing, but several PSMA-linked mills have secured stay orders to delay operations. Meanwhile, the federal proposal to deregulate the sector — including removing mill restrictions and ending import-export controls — risks empowering cartels in an already exploitative market. Critics argue that deregulation will weaken government oversight and further burden consumers.
DESPITE repeated claims by the relevant authorities, the prices of sugar are on a continuous rise and the situation could become grave if the povernment proceeds ahead with its plans to deregulate the prices of the commodity, which effectively means hands off before the sugar mafia.
The official sale price of sugar is Rs. 173 a kilogram but it is selling at Rs. 210 and even beyond in some regions of the country, making mockery of the writ of the government.
The Punjab Government, on its part, is making earnest efforts to help defuse the crisis as it has succeeded in persuading a majority of sugar mills to start crushing season to ensure timely availability of the commodity in abundance in the local market. The Punjab Government has taken a firm stance against mills that disregarded its directive to begin crushing operations by November 15, with 27 out of 41 mills resuming work as of Sunday. The remaining mills, all members of the Pakistan Sugar Mills Association (PSMA), have obtained a stay order to avoid implementing directions of the Provincial Government. It is also regrettable that instead of complementing efforts of the Provincial Government aimed at safeguarding interests of consumers, the Federal Government is being advised to go for complete deregulation leaving people at the mercy of cartels.
The plan includes removing restrictions on establishing new sugar mills and abolishing the import and export quota system. Under the proposed framework, sugar prices would be determined by market forces as well as import and export trends, representing a marked shift from current controls. All this is being done on the pretext of enhancing competitiveness of the sector but in practice it will amount to total surrender before the mafia, which has been manipulating prices for years without any worthwhile accountability. We hope the Prime Minister will not accept anti-people recommendations as deregulation is no answer in an exploitative market environment.
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Source : Pakistan Observer
